Relative Valuation and Corporate Valuation with MS Excel

About Course

Introduction:

In this comprehensive course, you’ll dive deep into the art of Relative Valuation and Corporate Valuation techniques using practical examples and real-world applications. We’ll explore different valuation ratios, comparable company analysis, and advanced financial models, such as Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). This course is designed to take you from a beginner to a pro in corporate valuation using Microsoft Excel, providing you with the essential tools to evaluate company performance and make informed financial decisions.

Section 1: Introduction to Relative Valuation

This section introduces the fundamental concepts of Relative Valuation. We begin by understanding its importance in financial analysis and comparing it with other valuation methods. Lecture 1 sets the stage for the rest of the course, giving you a clear framework for navigating through relative valuation strategies and tools. By the end of this section, you’ll understand why relative valuation is a crucial tool for comparing companies in similar industries.

Section 2: Types, Advantages, and Disadvantages of Valuation Ratios

In this section, we dive into different types of relative valuation methods, including Earnings and Book Multiples. You’ll explore the advantages and limitations of each, giving you a balanced view of when and how to apply them. By the end of this section, you’ll be able to differentiate between Price-to-Earnings (PE), Price-to-Book (PBV), Price-to-Sales (PS), and PEG Ratios, understanding their strengths and weaknesses in analyzing company performance.

Section 3: Practical Applications of Valuation Ratios

This hands-on section focuses on applying the concepts from the previous section in practical scenarios. You’ll work through real-world examples, such as calculating the Enterprise Value (EV) Ratio, identifying a list of comparable public companies, and analyzing Equity Value versus Enterprise Value. We’ll guide you through detailed analyses of different companies using ratios like PE, PBV, and Price-to-Sales to assess financial health. You’ll also conduct benchmarking analysis and learn how to build comparable company analysis sheets, which are vital tools in financial modeling.

Section 4: Corporate Valuation – From Beginner to Pro in Microsoft Excel

This section takes your valuation skills to the next level with a deep dive into Corporate Valuation techniques. You’ll start with a comprehensive overview and then progress through complex models like the Dividend Discount Model (DDM) and Discounted Cash Flow (DCF). You’ll learn how to forecast income statements, calculate terminal values, and link free cash flow to firm (FCFF). We’ll also cover how to analyze capital structures and perform DCF sensitivity analysis. By the end, you’ll have mastered the intricate details of both relative valuation and corporate valuation, becoming proficient in leveraging Excel for financial decision-making.

Conclusion:

By the end of this course, you will have a solid understanding of both Relative Valuation and Corporate Valuation methods. You’ll be equipped with practical skills in financial analysis, including how to apply valuation ratios, conduct comparable company analysis, and implement advanced financial models like DCF and DDM using Excel. This course prepares you to confidently analyze company performance and make informed decisions, whether you’re working in finance, investment, or managing your own business.

What Will You Learn?

Introduction to Relative Valuation – Understanding its importance and use in financial analysis.
Different Types of Valuation Ratios – Exploring Price-to-Earnings (PE), Price-to-Book (PBV), Price-to-Sales (PS), and PEG Ratios.
Advantages and Disadvantages of Valuation Ratios – When to apply each and their limitations.
Practical Application of Valuation Ratios – Hands-on exercises with real-world company examples.
Comparable Company Analysis – Identifying and evaluating public companies for benchmarking.
Equity Value vs. Enterprise Value – Calculating and understanding the differences between these key metrics.
Building Financial Models – Constructing advanced models like Dividend Discount Model (DDM) and Discounted Cash Flow (DCF).
Forecasting Financial Statements – Projecting income statements, balance sheets, and cash flows.
Working Capital and Cash Flow Analysis – Learning the intricacies of working capital and how it affects valuations.
Excel Skills for Corporate Valuation – Using Microsoft Excel to implement financial models, calculations, and sensitivity analysis.

Material Includes

7.5 hours on-demand video
Access on mobile and TV

Requirements

Basic Knowledge of Finance – A foundational understanding of financial concepts like income statements, balance sheets, and cash flow is recommended.
Familiarity with Financial Ratios – Awareness of common financial ratios such as PE, PBV, and ROE will be helpful.
Basic Microsoft Excel Skills – Knowing how to navigate and use Excel for basic formulas and data entry is essential.
Interest in Corporate Valuation – A genuine interest in learning how to value companies and analyze financial statements.
Eagerness to Learn – Willingness to engage with practical examples and develop hands-on skills.

Target Audience

Finance Professionals – Those working in investment banking, financial analysis, corporate finance, or related fields looking to enhance their valuation skills.
Business Students – MBA students or those studying finance who want practical knowledge in company valuation and financial modeling.
Investors & Traders – Individuals looking to evaluate companies more effectively through relative valuation and improve their investment decisions.
Accountants & Auditors – Professionals interested in understanding company valuations to complement their financial reporting or auditing practices.
Entrepreneurs – Business owners seeking to better understand the value of their company or potential investment opportunities.
Career Changers – Individuals transitioning into finance or corporate valuation roles who want to build foundational skills.
Anyone Interested in Corporate Valuation – Whether you're a beginner or have some experience, this course is for those eager to understand and apply valuation techniques.

Course Curriculum

Corporate Valuation – Beginner to Pro in Microsoft Excel

Corporate Valuations – Overview
Ddm – Dividend Discount Model- Intrinsic Value
Ddm – Dividend Discount Model- Required Rate Of Return
Ddm – Dividend Discount Model- Compare Intrinsic And Market Price
Ddm – Intrinsic Value Of Growth Companies
Ddm – Dividend Discount Model- Present Value
Introduction To Dcf
Forecasting Income Statement Ebitda
Understanding The Working Capital
Completing The Working Capital Calculations
Linking The Free Cash Flow To Firm Fcff
Discounting The Explicit Period Cash Flows
Calculation Of Terminal Values
Dcf Valuation Summary
Dcf Sensitivity Analysis
Understanding The Capital Structure
Options Treasury Stock Method
Options Explained
Calculation Of In The Money Convertibles
Calculation Of In The Money Stock Options
Calculation Of Debt Equity Ratio
Cost Of Debt Calculations
Cost Of Equity Calculation
Enterprise Value Calculation Completing The Missing Links
Introduction To Relative Valuation
Relative Valuations Enterprise Value And Equity Value
Relative Valuations Comparable Comp Sheet
Understanding Pe Ratio
Forward And Trailing Pe
Advantages And Limitations Of Pe
Understanding Pbv Ratio
Why Pbv Is Used In Banks
Pbv And Roe Used For Energy Sector
Understanding Pcf Ratio
Why Pcf Used In Oil Gas Gold Real Estate

Intro to Relative Valuation

Types and Advantages and Disadvantages

Practical Example

Understand EV Ratio
Understand EV Ratio Continues
Finding List of Public Company
PE Ratio
Advantages and Disadvantages of PE Ratio
Advantages and Disadvantages Continues
Equity Value
PBV Ratio
PBV Ratio Continues
Price to Sales Ratio
Advantages and Disadvantages of PS Ratio
PEG Ratio
Equity Value Vs Enterprise Value
Understand Comparable Company Analysis
Use of Comparable Company Analysis
Method of Comparable Company Analysis
Get Financial Information
List Of Comparable Company List
Bench Marking Analysis
Working on Target Sheet
Reported Income Statement
Adjusted Income Statement
Cash Flow Statement Data
Equity Value and Enterprise Value
Trading Multiples
Working on Company A Sheet
Calculating Gross Profit
Working on Balance Sheet Data
Working on Company B Sheet
Select Market Data
Working on Sheet C
Understand Bench Marking Summary
Understand Bench Marking Summary Continue
Working on Output Sheet
Working on Industry Average Sheet
Input Sheet
Relative Valuation Sheet
Working on DCF Valuation Sheet
Operating Leases
Total Capital Invested
Calculating Reinvestment Rate